Marathon Digital Dips Despite Positive Bitcoin Production News

Shares of Marathon Digital Holdings (MARA), a cryptocurrency-focused digital asset technology company, are down 7% at the time of writing despite the company disclosing that it produced 1,258.6 self-mined bitcoin in the first quarter of 2022.

The stock initially saw a small boost upon release of the news; however, the overall market seems to have dragged it down.

Production Details

The self-mined bitcoin production increased 556% year-over-year from 191.8 bitcoin in the last year’s quarter. Further, as of March 31, 2022, Marathon said it held nearly 9,373.6 of total bitcoin with a fair market value of $427.7 million.

Quarterly, the company produced 436.1 self-mined bitcoin during March 2022, up 21% sequentially. Also, during March, the company deployed 1,320 bitcoin miners.

Strategy Update

The company seeks to deploy miners in non-carbon emitting power stations with a view to make its mining operations 100% carbon neutral by 2022-end. Further, Marathon has been bagging approvals for establishing a grid connection at these locations. Finally, it expects to receive required approvals soon with initial energization in the near term.

The company expects to deploy all its miners by early 2023 and anticipates its mining operations to consist of about 199,000 bitcoin miners, producing nearly 23.3 EH/s.

Management Commentary

Marathon’s CEO Fred Thiel said, “Our primary focus at Marathon remains on deploying our miners. Given our record first quarter, our ability to work alongside our partners to overcome obstacles, and the positive news we recently received regarding deployments, we remain confident in our ability to continue to execute on our strategy of scaling Marathon into one of the largest, most agile, and most sustainably operated Bitcoin miners in North America.”

Wall Street’s Take

Last month, H.C. Wainwright analyst Kevin Dede maintained a Buy rating on Marathon with a price target of $50 (85.7% upside potential from its current price).

Analysts collectively see the stock as a Strong Buy based on five unanimous Buys. The average Marathon price forecast stands at $55.20 and implies an upside potential of 105% from its current price.

Insider Trading

Based on the recent corporate insider activity, corporate insider sentiment is Very Positive for the stock. This means that over the past quarter, there has been an increase in insiders buying shares of MARA.

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